Question : Assertion: Consumer equilibrium can be achieved at a point where the consumer's budget line is parallel to the horizontal axis.

Reason: This occurs when the consumer allocates their entire budget to one good, maximizing their utility within the given constraint.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.

Question : Assertion: Consumer equilibrium can be achieved at a point where the consumer's budget line is steeper than any indifference curve.

Reason: This occurs when the consumer exhausts their budget on the good with the highest marginal utility.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.

Question : Assertion: Consumer equilibrium can occur at multiple points of tangency between the budget line and indifference curves.

Reason: The consumer can achieve the same level of utility by choosing different combinations of goods that are equally preferable.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.

Question : Assertion: Indifference curves cannot intersect each other.

Reason: If indifference curves intersect, it would violate the transitivity assumption of consumer preferences.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.

Question : Assertion: A consumer maximizes utility by consuming goods until the marginal utility per unit of money spent is equal across all goods.

Reason: The consumer aims to allocate their budget in a way that maximizes their overall satisfaction.

Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion

Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.

Option 3: The assertion is true, but the reason is false.

Option 4: The assertion is false, but the reason is true.